Online business/service serving a foreign audience, do I also pay tax to that country

tinetic

New Member
Joined
Apr 12, 2018
Messages
2
Hi,

I've been a stalker on these forums for years. I've found countless answers to my questions without having to register.

Decided, that I might as well formalize my stalking.

Question is:
Suppose I am an S.A. registered company with a ecommerce service/site being offered to a UK audience... call it www.myawesomesite.co.uk

They pay online through PayPal or other, payments all going to my S.A. account.

Am I obliged to pay UK tax when I'm registered in S.A. and fullfilling my tax obligations with SARS already?

Like just about everyone I've paid for and subscribed to lots of US-based products and services, but never thought about how to navigate issues to do with tax or business law when you are a local business serving a foreign clientele.

Is it as simple as it being enough for me being registered here and meeting SARS obligation?

Or do I have to deal with the other country's tax law as well?...which I assume differs case by case.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
3,559
Hi,

I've been a stalker on these forums for years. I've found countless answers to my questions without having to register.

Decided, that I might as well formalize my stalking.

Question is:
Suppose I am an S.A. registered company with a ecommerce service/site being offered to a UK audience... call it www.myawesomesite.co.uk

They pay online through PayPal or other, payments all going to my S.A. account.

Am I obliged to pay UK tax when I'm registered in S.A. and fullfilling my tax obligations with SARS already?

Like just about everyone I've paid for and subscribed to lots of US-based products and services, but never thought about how to navigate issues to do with tax or business law when you are a local business serving a foreign clientele.

Is it as simple as it being enough for me being registered here and meeting SARS obligation?

Or do I have to deal with the other country's tax law as well?...which I assume differs case by case.

Since the company is domiciled in SA you will only need to pay company tax here. However, you are required to charge VAT to EU customers:

https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop
 
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